Starnet Members Outperform The S&P 500 In Revenue Per Employee
Find Commercial Flooring Contractors Near You With Starnet Commercial Flooring
In an era where Wall Street giants are celebrated for squeezing more revenue out of every employee, a cooperative of independent flooring contractors is quietly matching their playbook. While S&P 500 companies have spent decades investing billions into software, automation, and global scale to boost productivity, Starnet Worldwide Commercial Flooring members are approaching those same revenue‑per‑employee levels from the ground up—on job sites, in local markets, and through disciplined partnerships rather than massive corporate infrastructures.
S&P 500 Productivity Trend
Earlier in 2025 it was released that S&P 500 companies boosted revenue per employee from about $406,000 in 1991 to $642,000 today. This change reflects gains from technology and efficiency. Recent data from Matt Cerminaro confirms this, meaning it takes 1.55 employees to generate $1 million in revenue.
However, what do these numbers really say? At $642,000 per employee, you only need about 1.55 people to produce $1 million in revenue, compared with about 2.46 people in 1991. That is a big step‑change in productivity over a single working lifetime. Framed differently, each employee now “carries” a far larger slice of the income statement, which is why investors treat revenue per employee as a shorthand for productivity and operating leverage. To put it simply, the larger companies are doing far more with less in today’s economy.
Starnet’s Superior Performance
Starnet Worldwide, with over 170 commercial contractors across 390+ locations throughout North America, reports combined annual sales exceeding $4 billion for the third straight year in 2024, with the average revenue per Starnet member employee being about $550,000. Starnet’s $550,000 in revenue per employee is impressive considering it is approaching the $642,000 S&P 500 average while operating at a much smaller scale and in a far more labor‑intensive construction services niche. In practical terms, Starnet members are generating big‑company productivity levels without the advantages of trillion‑dollar balance sheets.
Some Starnet drivers include members leveraging structured pricing, vendor partnerships, and process optimization like streamlined bidding and project documentation. With almost 26% of members operating for more than 25 years, this depth of experience translates into repeatable playbooks and field execution that newer competitors often lack. Long‑tenured firms are also better positioned to standardize on preferred manufacturers, negotiate advantageous programs, and implement consistent job‑closeouts, all of which support higher revenue per employee and more predictable project outcomes.
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What Does This Mean For The Industry?
This productivity positions Starnet members as leaders amid a $7 billion commercial flooring market. It highlights scalable models for contractors, emphasizing vendor collaboration and data-driven KPIs. As AI and automation evolve, Starnet’s formula offers a blueprint for sustained growth in construction services.
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